Investment outlook

Global debt 2023 regional outlook

Global debt 2023 regional outlook

With global rates nearing a peak, 2023’s investment environment is shaping up to be much more constructive than last year’s. We expect global rates to stabilise over the next few months, providing both a high level of nominal income and less overall volatility in 2023. With the US Federal Reserve’s (“Fed”) hiking cycle anticipated to wind down over the next several months and China rapidly reopening, US dollar strength seems to have reached an inflection point. While some uncertainties remain, many of the headwinds of 2022 are shifting to tailwinds for international risk assets. Inflation and growth dynamics vary greatly across regions and countries, which we expect to lead to greater dispersion in individual country returns going forward, presenting significant opportunities for active management.

The Global Debt Team takes a macro-oriented approach to global fixed income markets, investing across interest rates, currencies, and, for some strategies, credit, with an investment horizon of nine to 18 months. Download the report below to explore the investment dynamics we are watching across major regions.

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